DOJ's $6.1M contract for medical evaluations awarded to a single vendor, raising competition concerns

Contract Overview

Contract Amount: $6,100 ($6.1K)

Contractor: Medical Evaluation Specialists, LLC

Awarding Agency: Department of Justice

Start Date: 2026-03-16

End Date: 2026-12-31

Contract Duration: 290 days

Daily Burn Rate: $21/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: FIT FOR DUTY APR FY26

Place of Performance

Location: FEDERAL WAY, KING County, WASHINGTON, 98003

State: Washington Government Spending

Plain-Language Summary

Department of Justice obligated $6,100 to MEDICAL EVALUATION SPECIALISTS, LLC for work described as: FIT FOR DUTY APR FY26 Key points: 1. The contract's value, while significant, is concentrated with one provider, limiting potential cost savings from competition. 2. The sole-source nature of this award warrants scrutiny regarding the justification for not seeking broader market input. 3. Performance risk appears moderate given the specialized nature of medical evaluations, but vendor capacity is key. 4. This contract supports essential healthcare services within the Federal Prison System, impacting inmate well-being. 5. The IT sector is not directly involved, focusing instead on direct medical service provision. 6. The fixed-price contract type provides cost certainty for the government, shifting performance risk to the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this specific medical evaluation contract is challenging without detailed service scope and comparable contract data. However, the award of $6.1 million for a period of less than a year suggests a substantial per-service cost. The lack of competition means there's no direct market comparison to assess if this price represents optimal value for money. Further analysis would require understanding the volume and complexity of evaluations performed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded through a sole-source justification. The absence of a competitive bidding process means that multiple vendors were not given the opportunity to offer their services and pricing. This limits the government's ability to leverage market forces to achieve the best possible price and service.

Taxpayer Impact: Taxpayers may be paying a premium due to the lack of competitive pressure. Without competing bids, it's difficult to ascertain if the awarded price reflects the most cost-effective solution available in the market.

Public Impact

Inmates within the Federal Prison System will benefit from necessary medical evaluations. The services delivered are critical for maintaining the health and safety of the incarcerated population. The geographic impact is national, covering facilities managed by the Bureau of Prisons. This contract supports a specialized segment of the healthcare workforce, requiring qualified medical professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award raises questions about the necessity and justification for bypassing competitive processes.
Limited transparency into the vendor selection process due to non-competitive award.

Positive Signals

Contract awarded for essential medical services, ensuring inmate health.
Firm Fixed Price contract provides cost certainty for the government.
Contract duration is clearly defined, allowing for predictable service delivery.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on medical evaluations for a unique population. The market for specialized medical services within correctional facilities is distinct, often requiring vendors with specific expertise and security clearances. Comparable spending benchmarks would typically be found within other government contracts for inmate healthcare or specialized medical assessments, but direct comparisons are difficult without more granular data.

Small Business Impact

The data indicates this contract was not competed under SAP and does not specify small business set-aside or subcontracting goals. Given the sole-source nature and the specialized medical services required, it is unlikely that small businesses were significantly involved in the primary award. Further investigation into subcontracting opportunities would be necessary to assess any potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Justice's Bureau of Prisons contracting and program management officials. Accountability measures would be tied to the performance standards outlined in the purchase order and the firm fixed-price terms. Transparency may be limited due to the sole-source award, but contract details should be publicly available through federal procurement databases.

Related Government Programs

Federal Bureau of Prisons Healthcare Services
Medical Services for Incarcerated Individuals
Department of Justice Medical Contracts
Physician Services Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpayment

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $6,100 to MEDICAL EVALUATION SPECIALISTS, LLC. FIT FOR DUTY APR FY26

Who is the contractor on this award?

The obligated recipient is MEDICAL EVALUATION SPECIALISTS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $6,100.

What is the period of performance?

Start: 2026-03-16. End: 2026-12-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was 'NOT COMPETED UNDER SAP,' which typically implies a sole-source justification was utilized. Common reasons for sole-source awards include unique capabilities of a single provider, urgent and compelling needs where competition is not feasible, or when only one responsible source exists. Without further documentation from the Department of Justice, the precise justification remains unknown. This lack of competition prevents an assessment of whether alternative vendors could have provided similar services at a better value or if the sole-source justification was indeed appropriate and documented according to federal acquisition regulations.

How does the cost per evaluation compare to industry benchmarks for similar medical services?

Determining a precise cost per evaluation is not possible with the current data, as the total award amount ($6.1 million) is for a defined period (March 16, 2026, to December 31, 2026) and does not specify the number of evaluations anticipated. To benchmark, one would need to know the volume of services. If we assume a high volume of evaluations, the implied cost per service could be substantial. Industry benchmarks for physician services vary widely based on specialty, location, and complexity. For correctional healthcare, specific cost data is often proprietary or aggregated, making direct comparison difficult. The lack of competition further complicates benchmarking, as there's no market-driven price point to reference.

What is the track record of MEDICAL EVALUATION SPECIALISTS, LLC with federal contracts, particularly within the Bureau of Prisons?

Information regarding the specific track record of MEDICAL EVALUATION SPECIALISTS, LLC with federal contracts, especially within the Bureau of Prisons, is not detailed in the provided data. A thorough assessment would require searching federal procurement databases (like SAM.gov or FPDS) for past performance history, including contract values, types of services rendered, and any reported performance issues or successes. Understanding their experience with similar patient populations and regulatory environments is crucial for evaluating the risk associated with this award. Without this historical data, it's difficult to ascertain their reliability and capability for fulfilling this contract effectively.

What are the potential risks associated with a sole-source award for essential medical services?

A primary risk of a sole-source award for essential medical services is the potential for inflated costs due to the absence of competitive bidding. Without market pressure, the awarded vendor may not be incentivized to offer the most competitive pricing. Another risk involves vendor performance; if the sole-source provider fails to meet expectations or experiences capacity issues, there are limited immediate alternatives for the government to transition to. This can lead to service disruptions and negatively impact the population relying on these critical medical evaluations. Furthermore, a lack of competition can sometimes indicate barriers to entry for other qualified providers, potentially stifling innovation and broader market development.

How does this contract's value and duration compare to previous spending on similar medical evaluation services by the Bureau of Prisons?

The provided data offers a snapshot of a single contract award for FY26. To compare historical spending, one would need to analyze procurement data for the Bureau of Prisons over previous fiscal years, specifically looking for contracts with similar scopes of work (medical evaluations) and service providers. The current contract's value of $6.1 million for a period of approximately 9 months (March 2026 - Dec 2026) provides a baseline. If previous contracts were competed and awarded at lower total values or for longer durations at comparable annual rates, it might suggest an increase in costs or a shift towards sole-source awards. Without this historical context, it's impossible to determine if this represents a trend or an anomaly in spending patterns.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Physicians › Offices of Physicians (except Mental Health Specialists)

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Alpha Analytical, Inc.

Address: 505 S 336TH ST STE 130, FEDERAL WAY, WA, 98003

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $6,100

Exercised Options: $6,100

Current Obligation: $6,100

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline